by Scott Ducey » Thu Jun 03, 2010 12:06 pm
Tom, thanks for the kind words, and yes I hear your point about what Bernie said. His implying that because I have a different idea, or have made suggestions contrary to his / the board in someway devalues the fleet is disappointing. I guess I am bad for Comanches since I disagree with him. I am not going to be like others that take great offense when someone behaves that way. If we had great leadership, Bernie would have allowed either Kris or me the opportunity to offer our own point in the Flyer. By doing so would suggest that he and the VP are interested and open to other ideas. They are not. They have no ideas, nor do they have any facts for their own position. That is why you never see the ICS President, Vice President or other members of the Board (excluding Bruce Thuman) wade into the forum. This is their own little club that they can control, and on some level feel important. We now have a dream team that includes a number of people that i have great respect for. I truly hope that they get something accomplished, but I do not know how anything substantial can be achieved WHEN the same group of people that don['t want to change are calling the shots.
Hans, I have nothing but the utmost respect and appreciation for the work that you do for our fleet. We need more individuals like yourself, Pat Barry, Zach Grant and others. I hope you understand that the whole idea of putting together this dream team of tech people is merely a means for the ICS Board to point to, so they can say, "see we are working on type support". The idea of tech support has been discussed, debated for years. Finally when someone actually did something, and presented a cogent idea (with financing)...i am referring to Kris Winter and myself...it was flatly rejected. They got cold feet when it was time to actually move on this issue. Forming yet another committee allows them to avoid making any kind of decision. Therefore, this yet again defers anything from being accomplished for several months, if not a year. I am aware of the suggestion that you make concerning the mag. While I will continue to be a member of ICS for now, I will no longer devote my time, money and energy helping a Board that lacks the ability to move from the past.
One final point. I have been talking with Jerry concerning my analysis of the magazine. Jerry is a smart guy, and feels that the way we should analyze the cost of the magazine is on a net basis meaning that we should present the expense of the magazine AFTER application of the advertising revenue it generates. While I explained to him that this is not the way we express numbers in financial statements, I would gladly put something together that reflects his approach. This is based on the 2008 financials. In 2008 ICS generated 304K in revenue. If Jerry wants to present the mag on a net basis, we would need to strip out the advertising revenue from the REVENUE components. Therefore the true revenue when netting-down the mag expense would now be $203K. The difference between the cost of the mag $180K and the advertising revenue of $101K, would be $79K. This would now be the expense under Jerry's method in lieu of $180K. His point is when you present the net numbers this way, the cost of the magazine is 39% of revenue being generated. In simple terms it looks like this
(See attached) - SORRY FOLKS. IT APPEARS THAT THIS SITE WILL NOT ALLOW AN ATTACHMENT CREATED IN WINDOWS VISTA. I WILL TRY TO ATTACH SOMETHING TONIGHT.
Jerry would suggest that the true cost of the magazine is 39%. My point is this is not the way financials are presented, and regardless of which way you look at it, we are spending a lot of money for a magazine that has 27 pages of advertisements, with the remaining pages consisting of a lot of pictures. More importantly, it is mostly a sentimental mag.
One final note, when you look at the financials, as presented by ICS 80% of revenues are consumed by expenses. Under Jerry's method, it is only 70%. I may have the math wrong here, but I believe employing this accounting approach distorts things, and this is why it is not employed in our presentation.
Best regards,
Scott